Agents losing turf to travel Web sites, travel association says

By Y. Sulaiman l eTN Asia

A recently released Pacific Area Travel Association (PATA) report has revealed travel agents, long gatekeepers of travel and price information, are being replaced by online booking engines that provide hotel and travel services, connecting anyone anywhere.

The report, Total Tourism Survey: The Industry Speaks, claims that smaller players have benefited enormously from the new technology. "The technology enables them to transmit information directly to consumers and finding more creative ways to target repeat travelers.

"The mushrooming of low-cost carrier airlines can certainly be attributed partly to the technology revolution. Travel agents and global distribution system operators now have to radically alter their business models"

A Center for Asia Pacific Aviation (CAPA) report in India says travel agents in India now have to accept a reduced commission of 5 percent, down from 9 percent previously.  "It's only a matter of time before it is completely wiped out."

Kapil Kaur, from CAPA's Indian office say airlines are now offering frequent flier miles if tickets are booked online." 

More experienced and well-traveled customers who are in the market for just flight ticket and accommodation are increasingly relying on travel Web sites to make reservations. International travel websites are also now distributing travel packages via the Internet.

Apichart Sanary, president of the Association of Thai Travel Agents (ATTA) estimates direct online reservation in Thailand is now about 40 percent of the total business transacted, an increase of 10 percent compared to five years ago.

John Watson, CEO of a travel agency told the Bangkok Post, agents still have an important role to play. "Customers want to have direct contact with a person who will get back to them when they have problems with their trip.

"The reservation websites have never been able to replace traditional travel agents over the past 10 years, and I don't think they ever will.

"Travelers who are not cost-conscious want more than just making a reservation. They want details on how to make their trips as pleasurable as possible. Agents can add value to their operations by using the Internet technology," added Watson.

Industry analysts point out travel agents need to evolve if they are to remain a viable part of the industry. Agents need to start offering any and every available service a traveler requires and become a travel advisor charging a fee for the service, rather than earning a commission.

"Most travel agents are still living in a well."